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Financial Planning / Tax Strategies


Subject:  Joint Account Treatment Date:  2/14/1999  5:51 PM
Author:  AEP Number:  10173 of 127753

Situation: My mother died last July. I was a Joint Tenant on several bank and stock accts with her for many years, her SSN was the taxid number of record and previous years int/div earnings where reported on her Income tax returns.

Does the IRS differentiate between - "Joint tenant in Common" and "Joint tenant with Rights of Survivorship" types of joint accounts with regard to what taxID number (survivor's SSN or estate's EIN) should be used to report the interest or dividends paid to the acct after the death of the primary owner?

I see in IRS pub (559,page 2, bottom-right col.) that the "Surviving Joint Owners" SSN should be used to report the Interest paid after the death of the primary owner. Does the "type" of Joint account make any difference in this situation?

What is the purpose of each of these types of joint acct for bank and stock accts? Does one type offer more advantages over the other kind? If yes, what are the things to be considered when establishing a joint acct if given the opportunity to select between these two kinds of joint account? Are there other than these two types of joint accounts?

I had been told that the type of Joint Account made a difference in this circumstance - I haven't been able to substantiate that it does. Based strickly on the wording in Pub 559 noted above, I would say that all the post-death int/div paid to the joint accts should be directed to the surviving joint owner's SSN.

Is there any possibility that a "Joint in Common" acct's int/div should be reported to the dead person's EIN taxid instead instead of the surviving owner's SSN?


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